Dubai’s villa sales prices and rents have spiked over the last 12 months, and up an average of 40 percent in the first quarter of the year as demand remained strong despite limited supply in the market.
Rents have likewise surged by 25 percent year on year, with three-bedroom units in premium locations like the Palm Jumeirah now costing nearly half a million dirhams or AED435,000 ($118,430) annually.
Leasing rates have gone up the most in Dubai Hills Estate and Arabian Ranches, up by 48 percent and 47 percent, respectively.
For properties on sale, premium waterfront residential units, or those close to the beach, recorded the biggest jump in prices, led by Jumeirah Park with a 63 percent hike, Palm Jumeirah (56 percent), and Springs (54 percent).
Dubai’s residential property market has been witnessing strong demand since COVID-19 restrictions eased in 2020.
According to the Dubai Land Department’s transaction data, over the last several months, the number of villas, as well as apartments, sold in a week has exceeded 1,000.
The trend has been supported by new visa-related initiatives and regulations that are intended to attract foreign direct investment (FDI) and foreign talent, as well as the continued easing of pandemic restrictions.